Defending Debt Collection Lawsuits | Live Q&A with Arizona AttorneyJohn Skiba | Summary and Q&A

TL;DR

Get answers to common questions about debt collection lawsuits, bankruptcy, and related topics from consumer advocate and attorney John Skiba.

Key Insights

• 👨‍💼 Bankruptcy can be an option for individuals with failed small businesses, but it does not typically discharge business debts.
• 🧑‍🏭 Debt consolidation companies may be helpful, but success often depends on factors like the number of creditors and the ability to save a lump sum to negotiate settlements.
• 🌱 In Chapter 13 bankruptcy, receiving large inheritances can affect the repayment plan and may require legal advice.
• 🥺 Being in contempt of court can lead to a bench warrant being issued, primarily if you ignore a court order to appear.
• 👋 Selling assets to pay off debts before bankruptcy may avoid potential issues with preferences, but it's best to consult with an attorney and wait for a designated period.
• 💼 Dismissal of a case with prejudice means it cannot be refiled, but it does not eliminate the possibility of continued collection attempts.
• 😷 Medical debts may be removed from credit reports fairly quickly after payment.
• 📁 The timeline for filing a motion to compel arbitration depends on the language in the original creditor's contract.

Transcript

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Questions & Answers

Q: Can I file for bankruptcy to get rid of business debts?

While bankruptcy is often used to eliminate personal debts, small businesses do not receive the same discharge as individuals. Filing for bankruptcy may be necessary to address personal liabilities tied to the business but will not eliminate business debts.

Q: Are there any honest debt consolidation companies you can recommend?

Debt consolidation companies can be complex, and it's crucial to understand their process. They often negotiate settlements with your creditors, but success depends on factors such as the number of creditors, your ability to save money quickly, and the amount owed. Consider working with an attorney or attempt negotiation on your own.

Q: How does receiving an inheritance affect a Chapter 13 bankruptcy filing?

An inheritance can impact a Chapter 13 bankruptcy plan, as it influences the average monthly income calculation and may result in higher payments to creditors. It's crucial to consult with an attorney to determine the best course of action.

Q: Can I negotiate with creditors after filing for bankruptcy and obtaining the automatic stay?

Once you file for bankruptcy, the automatic stay is in effect, prohibiting creditors from pursuing collections. This means creditors will most likely not negotiate with you during the bankruptcy process. However, after filing, you may still receive collection letters or calls until the debts are discharged as part of the bankruptcy process.

Summary & Key Takeaways

• John Skiba, a consumer advocate and attorney specializing in bankruptcy and debt collection lawsuits, offers resources and information for individuals dealing with serious debt issues.

• He discusses common questions, such as whether bankruptcy applies to business debts and recommendations for debt consolidation companies.

• He emphasizes the importance of seeking legal advice and provides a platform for viewers to submit their own questions for discussion.